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Spain pays lower rate to raise cash in bond market

Tuesday, 16 Oct 2012 | 6:10 AM ET

MADRID -- Spain has raised (EURO)4.9 billion ($6.4 billion) at slightly lower interest rates in a debt auction that saw strong demand as the country considers whether to request international help to manage its finances.

The Treasury sold (EURO)3.4 billion in 12-month bills at an average interest rate of 2.82 percent, down from 2.84 percent in the last such auction Sept. 18.

It sold (EURO)1.5 billion in 18-month bills at a rate of 3.02 percent, down from 3.04 percent.

The sale Tuesday was the first since credit rating agency Standard & Poor's last week cut its rating on Spain's debt by two notches to BBB-, just a step above junk status.

Demand was 2.78 times the amount offered in the shorter bills and 3.6 times for the longer bills.